singapore nifty

Monday, the Indian market is poised for a sharp rally after the Nuclear Suppliers Group adopted by consensus, a US initiative to lift a 34-year-old embargo on nuclear trade with India. Fresh buying in select index-heavyweights, which appears likely, and short covering may prop up investor sentiment. Meanwhile, an expected delay in the withdrawal of the monsoon is likely to benefit crops in the current kharif as well as in the ensuring Rabi season. Additionally, the positive mood in the rest of the Asian markets after the U.S. government stepped in to take control of the two government-sponsored mortgage lenders, namely Fannie Mae and Freddie Mac, to avert their collapse could also lend support to the market.

The two-year-old Singur crisis was resolved late last night after the West Bengal Governor announced a breakthrough in the impasse in the presence of the Chief Minister and the Trinamool Congress chief at the end of a series of meeting between them. The end of two-year-old agreement could bring some relief among market men.

Despite the underlying positive sentiment, a more than $2- a- barrel gain in the price of oil in Asian trading on Monday could weigh on sentiment. Currently, crude oil is trading at $108.69 a barrel, up 2.32% over concerns that Hurricane Ike may threaten production and oil and gas facilities in the Gulf of Mexico. In the near term, the meeting of the Organization of Petroleum Exporting Countries (OPEC) on Tuesday will have significant impact on the movement of oil prices. Since OPEC's 13 members account for about 40% of the world's oil production, the cartel's decision whether or not to change the production levels could have an impact on oil prices.


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